Asian equities are doing well as markets start to price the possibility that the US tariffs maybe reversed following initial comments from the US Supreme Court challenge, although that institution is as compromised as Congress so don’t hold your breath. Only local stocks failed to perform well with the USD still firm against most of the currency pairs with the Australian dollar lifting slightly to just get above the 65 cent level while the Kiwi has steadied after another bad unemployment print.
Oil markets are in retreat after last night’s move lower with Brent crude dropping down to the $63USD per barrel level while gold is trying to stabilise after a modest lift higher currently lifting above the $3985USD per ounce level:
Mainland Chinese share markets are building strongly going into the close with the Shanghai Composite up 0.8% to breach the 4000 point barrier while the Hang Seng Index is doing even better, up 1.6% to 26361 points. Japanese stock markets are doing well also with the Nikkei 225 up more than 1.5% to 50997 points while trading in the USDPY pair has seen a lift higher above the 154 handle:
Australian stocks were the worst performers in the region but still managed a small lift, with the ASX200 closing 0.3% higher at 8826 points while the Australian dollar has bounced back somewhat to get back above the 65 cent level against USD:
S&P and Eurostoxx futures are lifting up slightly but overall look weak going into the London session with the S&P500 four hourly chart showing the market wanting to stabilise around the 6800 point level:
The economic calendar includes the latest Bank of England interest rate meeting then weekly US jobless claims.